contents · justifiableness of the biomass en- ergy plant conclusions 203 . 3 introduction choice...

2

CONTENTS INTRODUCTION Page 1. ALBANIA -EVALUATION OF ECONOMIC 04

JUSTIFIABLENESS FOR INVESTING IN TWO DIFFERENT RES PROJECTS 2. GREECE - EVALUATION OF ECONOMIC 32

JUSTIFIABLENESS FOR INVESTING IN TWO DIFFERENT RES PROJECTS 3. ITALY - EVALUATION OF ECONOMIC 60

JUSTIFIABLENESS FOR INVESTING IN THREE DIFFERENT RES PROJECTS 4. MACEDONIA - EVALUATION OF ECONO- 110

MIC JUSTIFIABLENESS FOR INVESTING IN THREE RENEWABLE - ENERGY PROJECTS

5. SERBIA - EVALUATION OF ECONOMIC 151

JUSTIFIABLENESS FOR INVESTING IN FOUR DIFFERENT RES PLANTS

6. GERMANY – EVALUATION OF ECONOMIC 193 JUSTIFIABLENESS OF THE BIOMASS EN- ERGY PLANT

CONCLUSIONS 203

3

INTRODUCTION

Choice of an optimal IRES scheme, beside the other influencing factors, depends on the

economic feasibility to complete the plants in question and profitability of their exploitation.

Any planning, not taking into account these two influencing factors, shall be unsuccessful!

Furthermore, when such different economy environment is in question, like it is the case with

the target regions of the project RES integration, it is particularly important to understand why

resulting economy of similar projects is different and which are the factors influencing to

come to such results. In that way, encouraging development factors and constraints can be

identified, enabling use of the first or activities to eliminate the seconds, i.e. to positively

influence correction of the present economy environment.

Normally, evaluation of any investment goes through application of particular metho-

dologies, developed by national or international finance institutions. Obviously, and in order

to get comparable results and influencing factors, it was necessary to chose a common

methodology to be applied for the elements of the RES Integration IRES schemes. The one

of EBRD has been found as appropriate because being recognized in all the EC countries,

but also all over the world. Necessary software has been on disposal at one of the

collaborating institutions of MAGA, with possibility to use it free of charge for educational and

non-profit research needs. It is a cost benefit analysis, enabling to identify profitability of the

investment in a concrete project, based on the finance data for the composition of it, costs of

exploitation, conditions of available market for product(s) and available finance conditions to

cover the investment.

A template has been prepared by the WP leader and sent to all participants of the

project to fill it with necessary set of data for each one of the projects of their IRES schemes.

Completes of the cost benefit analysis are presented in the following written complete and

some comments, foundlings and discussion on the common elements of results get, at the

end.

5

ALBANIA EVALUATION OF ECONOMIC JUSTIFIABLENESS FOR INVESTING IN TWO DIFFERENT RES PROJECTS

6

RES Integration Project WP 4 Project Partner: ALBANIA

COST BENEFIT ANALYSIS According to the financial model that shows the projections of the energy

production from Small Hydropower Plants recourses in Albania, we can comment the following:

1. PROJECT FOR Small Hydropower Plants ALBANIA (repayment period 7 years)

Considering the fact that the total costs (costs + annual credit instalment) are higher

than the incomes, this project is not profitable for this period of analysing and this capacity of energy production (kWh). It means that the basic investment for realization of this project is too much expensive.

• Financial rate of return

The financial rate of return is negative (-22%) for the discount rate (15%), which means that the project will realize more costs than incomes, i.e. the investment is non-profitable.

7

Table 1. Total capital costs

Small Hydropower Plants ALBANIA (repayment period 7 years)

in denars in EUR

DEN/EUR 61,7

Preparing activities 0.0 0.0

Building construction 67.870.000 1.100.000

- building and crafty activities 67.870.000 1.100.000

- machine instalations 0

- electroinstalations and telephony 0

- drain and drainage 0

- other activities 0

EQUIPMENT 33.935.000 550.000

equipment 33.935.000 550.000

0 0

- tax 0 0

ADDITIONAL EQUIPMENT 0 0

- invoice value with assemblage and transport 0 0

- custom 0% 0 0

- tax 18% 0 0

VECHICLES 3.085.000 50.000

- invoice value with assemblage and transport 3.085.000 50.000

- custom 0 0

- tax 18% 0 0

OTHER 9.255.000 150.000

- licence rights and patent 9.255.000 150.000

- engineering and managing the project 0 0

- training 0 0

- shape of projects 0 0

- interest 0 0

- other costs 0 0

Other capital costs 0 0 TOTAL PLANNED COSTS FOR FIXED ASSETS 101.805.000 1.850.000

Funds planned for working capital 19.430

TOTAL REQUIRED FUNDS 101.805.000 1.869.430

8

Table 2. Total financial sources

Table 3. Structure of utilisation

Table 4. Sales in EUR after investment

Annual production 2007 2008 2009 2010 2011 2012 2013

Quantity (kWh) 0 0 2.000.00

0 4.000.00

0 4.000.00

0 4.000.000 4.000.000

Price per unit 0,2

Euro 0,075 0,08 0,09 0,095 0,1 0,1 0,1 Value= Product unit * price per unit 0 0 180.000 380.000 400.000 400.000 400.000

Quantity

RESOURCES countervalue

in denars in EUR

DEN/EUR 61,7 Structure of

funds resources

BANKING CREDITS 69.208.890,0 1.121.700,0 60,00%

- Bank 69.208.890,0 1.121.700,0 60,00%

- Commercial Banks 0,0 0,0 0,00%

- World Bank 0,0 0,0 0,00%

- European Bank 0,0 0,0 0,00%

- Other resources 0,0 0,0 0,00%

OWN SOURCES 46.139.260,0 747.800,0 40,00%

- preparatory investments 46.139.260,0 747.800,0 40,00%

- additional investments 0,0 0,0 0,00%

- SEAF 0,0 0,0 0,00%

-from accumulation 0,0 0,0 0,00%

- from depreciation 0,0 0,0 0,00%

OTHER SOURCES 0,0 0,0 0,00%

0,0 0,0 0,00%

0,0 0,0 0,00%

TOTAL FINANCAIL SOURCES 115.348.150,0 1.869.500,0 100,00%

in denars in EUR

DEN/EUR 61,7 Structute of utilization

MACHINES, EQUIPMENT AND TECHNOLOGY

55.367.112,00 897.360,0 80,00%

BUILDING CONSTRUCTION 0,0 0 0,00%

WORKING CAPITAL

13.841.778,00 224.340,0 20,00%

TOTAL BANK CREDIT 69.208.890,0 1.121.700,0 100,00%

9

Price per unit Value= Product unit * price per unit

Quantity

Quantity


Incomes from other activities

TOTAL IN EUR 0 0 180.000 380.000 400.000 400.000 400.000

Domestic market (in % from total) 100% 100% 100% 100% 100% 100% 100% Foreign market (in % from total) 0% 0% 0% 0% 0% 0% 0%

Table 5. Total costs after investment

Costs for energy

Maintanance costs

1.000,00 50.000,00 100.000,00 105.000,00 107.000,00 107.000,00 107.000,00

Indirect costs

Other costs

Total costs in EUR 100.000

105.000

107.000

107.000

107.000

100.000

105.000

Table 6. Annual profit

FORESEEN ANNUAL PROFIT

for the new project as a difference between the new and current production

(before and after investment)

exchange for EUR 61,7 61,7 61,7 61,7 61,7

TOTAL NUMBER OF EMPLOYEES

Amounts in denars 2007 2008 2009 2010 2011 2012 2013

Total raw materials Total raw materials - domestic

-

-

-

-

-

-

-

Total raw materials - foreign

-

-

-

-

-

-

-

Salary costs Salary costs for regular employees Compensation costs for part time jobs

10

in EUR

2007 2008 2009 2010 2011 AFTER INVESTMENT 2012 2013

Incomes from domestic market 0 0

180.000

380.000

400.000

400.000

400.000

Incomes from export

-

-

-

-

-

-

-

Total incomes

0 0

180.000

380.000

400.000

400.000

400.000 Costs from domestic

market

1.000

50.000

100.000

105.000

107.000

107.000

107.000 Costs from foreign

market

-

-

-

-

-

- -

Total operational costs

1.000

50.000

100.000

105.000

107.000

107.000

107.000

GROSS WORKING INCOMES

(1.000)

(50.000)

80.000

275.000

293.000

293.000

293.000

GROWTH AND FINANCIAL

CALCULATIONS Incomes from domestic

market

-

-

180.000

380.000

400.000

400.000

400.000 Incomes from

export

-

-

-

-

-

- -

Total incomes

-

180.000

380.000

400.000

400.000

400.000

400.000 Costs from domestic

market

1.000

50.000

100.000

105.000

107.000

107.000

107.000 Costs from foreign

market

-

-

-

-

-

- -


1.000

50.000

100.000

105.000

107.000

107.000

107.000


(1.000)

(50.000)

80.000

275.000

293.000

293.000

293.000

Table 7. Working capital

FORESEEN ADDITIONAL WORKING CAPITAL

exchange for EUR 61,7 61,7 61,7 61,7 61,7

in EUR

2007 2008 2009 2010 2011

Increased current assets:

Cash needed 0 0 1.800 3.800 4.000

(as % of increased income) 1% 1% 1% 1% 1%

Receivables from buyers 0 0 14.795 31.233 32.877 (number of collecting days/ increased income) 30 30 30 30 30

Inventories Materials and spare parts (raw materials) 0 0 0 0 0 (number of collecting days/ increased costs and inventories) 30 30 30 30 30

Finished and semifinished products 0 0 0 0 0

11

(number of collection days/ increased income) 0 0 30 30 30

Final product 0,0 0,0 14.794,5 31.232,9 32.876,7 (number of collection days/ increased income) 30 30 30 30 30

Other 0 0 0 0 0

(% of increased income) 0% 0% 0% 0% 0%

Increased current assets 0,0 0,0 31.389,0 66.265,8 69.753,4

Increased short term liabilities

Liabilities toward suppliers 83 4.110 8.219 8.630 8.795 (number of collection days/ increased costs) 30 30 30 30 30

Salary liabilities - -

-

-

-

(number of pay out days/increased salaries) 30 30 30 30 30

Depreciation 11.425 11.425

11.425

11.425

11.425

( number of calculation days/annual depreciation) 30 30 30 30 30

Other 0 0 7.849 16.570 17.442

( % of increased income) 4% 4% 4% 4% 4%

Increased short term liabilities -11.507 15.534 27.493 36.625 37.662 ADDITIONAL WORKING CAPITAL -11.507 -15.534 3.896 29.641 32.092 INCREASING OF ADDITIONAL WORKING CAPITAL -11.507 -4.027 19.430 25.745 2.451

Table 8. Financial Rate of Return for investment of 5 years

FINANCIAL RATE OF PROFITABILITY

in EUR

2006 2007 2008 2009 2010 2011 2012 2013

Project costs:

Total project costs: -1.869.430,4 0,0 0,0 0,0 0,0 0,0 0,0 0,0

Increased income:

Domestic incomes 0,0 0,0 0,0 180.000,0 380.000,0 400.000,0 400.000,0 400.000,0

Foreign incomes 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 Total increase income 0,0 0,0 0,0 180.000,0 380.000,0 400.000,0 400.000,0 400.000,0 Incresed operational costs Costs from domestic market 0,0 1.000,0 50.000,0 100.000,0 105.000,0 107.000,0 107.000,0 107.000,0 Costs from foregin market 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 Total increased operational costs 0,0 1.000,0 50.000,0 100.000,0 105.000,0 107.000,0 107.000,0 107.000,0 107.000,0 Increased gross working profit 0,0 -1.000,0 -50.000,0 80.000,0 275.000,0 293.000,0 293.000,0 293.000,0 293.000,0 INCREASED NET PROFIT

-1.869.430,4

-1.000,0

-50.000, 80.000,0

275.000,0

293.000,0

293.000,0

293.000,0

293.000,0

12

0

FINANCIAL RATE OF RETURN -22%

NET PRESENT VALUE

-1.350.08

7,7

(discount rate) 15%

Table 9. Review of credit liabilities

Amount in EUR

Source of assets BANK

Credit amount 1.121.700

Repayment period in years without grace period 4

Grace period - years 1

Amount of annual instalment 280.425

Interest 8,00%

Periods Credit Instalment Interest Annuity

1 1.121.700 - 89.736 89.736

2 1.121.700 280.425 89.736 370.161

3 841.275 280.425 67.302 347.727

4 560.850 280.425 44.868 325.293

5 280.425 280.425 22.434 302.859

Total 1.121.700 314.076 1.435.776 Table 10. Calculation of Depreciation

Nr. Fixed assets Value % Depreciation

1 Building - old - 0% -

2 Building - new 1.100.000 4,0% 44.000

3 Equipment - old 0% -

4 Equipment - new 550.000,0 10% 55.000

5 Subsidiary equipment -old 0,00% -

6 Subsidiary equipment -new 0,0 -

7 Vechicles - old 0% -

8 Vechicles - new 50.000,0 20% 10.000

9 Other - old - 0% -

10 Other - new 150.000 20,0% 30.000,00

11 TOTAL - OLD -

12 TOTAL - NEW 139.000,00

13 ALL TOTAL 139.000,00

13

Table 11. Sensibility of Rate of Profitability

ANALYZING THE SENSIBILTY OF THE FINANCIAL RATE OF PROFITABILITY

TESTING THE SENSIBILITY Domestic incomes -10%

Changes in % on 5 variables Foreign incomes 0%

with the following presumptions:

Price of rawmaterials on domestic market 0%

in EUR

Proce of raw materials on foreign market 0%

Investment costs 20%

2006 2007 2008 2009 2010 2011

Project costs (Investment):

Total project costs -1.869.430,4 0,0 0,0 0,0 0,0 0,0

Increased income

Domestic income 0.0 0,0 0,0 172.800,0 364.800,0 384.000,0

Foreign income 0.0 0,0 0,0 0,0 0,0 0,0

Total increased income 0.0 0,0 0,0 172.800,0 364.800,0 384.000,0

Increased oeprational costs

Costs for domestic market 0.0 1.000,0 50.000,0 100.000,0 105.000,0 107.000,0

Costs from foreign market 0.0 0,0 0,0 0,0 0,0 0,0 Total increased operational costs 0.0 1.000,0 50.000,0 100.000,0 105.000,0 107.000,0 Increased gross working profit 0.0 -1.000,0 -50.000,0 72.800,0 259.800,0 277.000,0

INCREASED NET PROFIT -1.869.430,4 -1.000,0 -50.000,0 72.800,0 259.800,0 277.000,0

FINANCIAL RATE OF RETURN -23%

NET PRESENT VALUE

-1.368.678,

7

(discount rate) 15%

14

Table 12. Simplificated balance sheet

SIMPLIFICATED BALANCE SHEET

EUR

2007 2008 2009 2010 2011 2009 2009

ASSETS:

Current assets

Surplus of cash -973.687 148.013 148.013 148.013 148.013 148.013 148.013

Cash from working 0 0 1.800 3.800 4.000 4.000 4.000 Receivables for buyers 0 0 14.795 31.233 32.877 32.877 32.877

Inventories 0 0 14.795 31.233 32.877 32.877 32.877

Other 0 0 0 0 0 0 0

Total current assets -973.687 162.808 195.840 215.923 217.766 217.766 184.890

Net fixed assets 1.850.000 1.838.575 1.827.151 1.815.726 1.804.301 1.792.877 1.781.452

Total fixed assets 1.850.000 3.708.006 3.696.581 3.685.156 3.673.732 3.662.307 3.650.882

TOTAL ASSETS 2.734.319 3.859.389 3.880.997 3.889.654 4.094.633 4.083.208 399.449 LIABILITIES AND SHAREHOLDING CAPITAL (NEW)

Liabilities

Deficit of cash 89.611 250.611 250.611 250.611 250.611 250.611 250.611 Short liabilities toward suppliers 2.137 82 4.110 8.219 8.630 8.795 8.795

Other -82 -4.110 23.170 57.636 60.959 60.959 60.959

Debts 161.000 -306.375 -773.750 -1.241.125 -1.708.500 -1.708.500 -1.708.500 Other long term liabilities and reservations 0 0 0 0 0 0 0

TOTAL LIABILITIES 250.611 -55.764 -491.750 -924.248 -1.388.136 -1.388.136 -1.388.136

Shareholding capital

Capital 747.800 747.800 747.800 747.800 747.800 747.800 747.800

Retained annual profit -132.837 -142.818 -6.029 184.484 -184.022 229.885 229.885

Retained profits 0 -132.837 -275.655 -281.684 -97.200 -281.222 -51.337 TOTAL SHAREHOLDING CAPITAL 614.963 472.145 466.116 650.600 466.578 696.463 926.348

TOTAL LIABILITIES AND SHAREHOLDING CAPITAL 865.574 416.381 -25.634 -273.648 -921.558 -691.673 -461.788

15

Table 13. Income statement

INCOME STATEMENT

in EUR

2006 2007 2008 2009 2010 2011 2012 2013 Sales and other incomes:

in country -

-

-

180.000

380.000

400.000

400.000

400.000

abroad -

-

-

-

-

-

-

-

Total sale -

-

-

180.000

380.000

400.000

400.000

400.000

Costs and expenditures

Raw materials

in country -

-

-

-

-

-

-

-

abroad -

-

-

-

-

-

-

-

Gross salaries -

-

-

-

-

-

-

-

Other costs -

1.011

50.574

101.148

106.205

108.228

108.228

108.228

Total costs

- 1.011

50.574

101.148

106.205

108.228

108.228

108.228

Depreciation: Total depreciation

-

11.425

11.425

11.425

11.425

11.425

11.425

11.425

Interest costs Total interest costs

89.736

67.302

44.868

22.434

302.859

-

TOTAL OPERATIONAL INCOMES AND EXPENDITURES

-

102.172

129.300

157.440

140.064

422.512

108.228

108.228

Extra items: Total extra items

-

-

-

-

-

-

-

-

NET PROFIT BEFORE TAXATION -

(102.172)

(129.300)

22.560

239.936

(22.512)

(108.228)

(108.228)

Income tax - 18.391

23.274

(4.061)

(43.189)

4.052

19.481

19.481

(% from the income before taxation) 18% 18% 18% 18% 18% 18% 18%

NET PROFIT (83.781)

(106.026)

18.499

196.748

(18.459)

(88.747)

(88.747)

16

Table 14. Review of Cash Flow

REVIEW OF CASH FLOW

(SOURCES OF ASSETS AND NEED FOR INVESTMENT)

61,7 61,7 61,7 61,7 61,7 61,7 61,7

In EUR

2007 2008 2009 2010 2011 2012 2013

SOURCES

Own resources

Retained profit

(83.781)

(106.026)

18.499

196.748

(18.459)

(88.747)

(88.747)

Depreciation

11.425

11.425

11.425

11.425

11.425

11.425

11.425 Cash inflow from regular working

(72.356)

(94.602)

29.924

208.173

(7.035)

(86.690)

(86.690)

(94.602)

Credits 1.121.700

-

-

-

-

-

-

Total financial activities 1.121.700

-

-

-

161.000

From other sources - New capital from owners

747.800

-

-

-

-

New capital from joint ventures

-

-

-

-

-

TOTAL SOURCES

1.797.144

(94.602)

29.924

208.173

(7.035)

(86.690)

(86.690)

DEMAND

Investments Total investments

1.869.430

-

-

-

-

-

-

Financial activities

Instalments

-

280.425

280.425

280.425

280.425

22.434

302.859 Total financial activities -

280.425

280.425

280.425

280.425

22.434

302.859

TOTAL DEMAND

1.869.430

280.425

280.425

280.425

280.425

22.434

302.859

ANNUAL SURPLUS/DEFICIT OF CASH

(72.287)

(375.027)

(250.50

1)

(72.252)

(287.46

0)

(109.12

4)

(389.54

9) 1.351.294

CUMULATIVE SURPLUS/DEFICIT

(72.287)

(447.314)

(697.81

5)

(770.06

7)

(1.057.5

27)

(1.166.6

52)

(1.556.2

01) 1.154.712

17

Table 15. Projection of net foreign market inflow

PROJECTION OF NET FOREIGN CURRENCY INFLOW

in EUR 2006 2007 2008 2009 2010 2011 SOURCES Total export 0 0 0 0 0 0 Credits 1.121.700 0 0 0 0 0 Total foreign currency sources 1.121.700 0 0 0 0 0 EXPENDITURES Inevstement costs (planned) 1.869.430 0 0 0 0 0 Import Total import 0 0 0 0 0 0 Credit repayment Instalment, net 0 0 280.425 280.425 280.425 280.425 Interest 0 89.736 67.302 44.868 22.434 302.859 Total credit repayment 0 89.736 347.727 325.293 302.859 583.284 Total foreign currency expenditures 1.121.700 89.736 347.727 325.293 302.859 583.284 TOTAL NET FOREIGN CURRENCY PROFIT 0 -89.736 -347.727 -325.293 -302.859 -583.284

Table 16. Financial Ratios

FINANCIAL RATIOS

in EUR

2007 2008 2009 2010 2011

Liquidity

Current ratio

Current assets (� ) 0 14.795 47.827 67.910 36.877

Short term liabilities (B) 0 0 31.389 66.266 69.753

� /B #DIV/0! #DIV/0!

1,52

1,02

0,53

Quick ratio

Current assets (� ) 0 14.795 47.827 67.910 36.877

Inventories (B) 0 0 14.795 31.233 32.877

Short term liabilities (C) 0 0 31.389 66.266 69.753

(� -B)/C #DIV/0! #DIV/0!

0,53

0,53

0,53 The share of debt in total capital

Debts in total assets

Debt (� ) 161.000 -119.425 -399.850 -680.275 -960.700

Total assets (B) 2.734.319 3.859.389 3.880.997 3.889.654 399.449

� /B 6% -3% -10% -17% -241%

Debt/Shareholding capital

Debt (� ) 161.000 -119.425 -399.850 -680.275 -960.700

18

Shareholding capital (B) 664.019 557.993 576.492 773.239 754.780

� /B 24% -21% -69% -88% -127%

Debt spreading over

Net income (� ) -83.781 -106.026 18.499 196.748 -18.459

Depreciation (B) 11.425 11.425 11.425 11.425 11.425

Interest (C) 89.736 67.302 44.868 22.434

Mature instalment (D) 0 280.425 280.425 280.425 280.425

(� +B+C)/ D 0,2 -0,1 0,2 0,8 0,0

Profitability

Net profit rate

Net profit (� ) -83.781 -106.026 18.499 196.748 -18.459

Income (B) 0 0 180.000 380.000 400.000

� /B #DIV/0! #DIV/0! 10% 52% -5%

Return of total assets

Net profit (� ) -83.781 -106.026 18.499 196.748 -18.459

Total assets (B) 2.734.319 3.859.389 3.880.997 3.889.654 399.449

� / B (0,03)

(0,03)

0,00

0,05

(0,05)

Return of capital

Net profit (� ) -83.781 -106.026 18.499 196.748 -18.459

Capital (� ) 664.019 557.993 576.492 773.239 754.780

� / B (0,13)

(0,19)

0,03

0,25

(0,02)

Working

Inventories turn over

Sales costs (� ) 1.011 50.574 101.148 106.205 108.228

Inventories (B) 0 0 14.795 31.233 32.877

� / B #DIV/0! #DIV/0! 3,42 3,24 3,23

Average time for payment

Receivables (� ) 0 0 14.795 31.233 32.877

Daily income (B) 0 0 493 1.041 1.096

� / B #DIV/0! #DIV/0! 30 30 30

Turn over of fixed assets

Income (� ) 0 0 180.000 380.000 400.000

Fixed assets (B) 1.850.000 3.708.006 3.696.581 3.685.156 3.673.732

� / B 0,0 0,0 0,0 0,0 0,1

Turn over of all assets

Income (� ) 0 0 180.000 380.000 400.000

Total assets (B) 2.734.319 3.859.389 3.880.997 3.889.654 399.449

� / B 0,0 0,0 0,0 0,1 1,0

19

RES Integration Project WP 4 Project Partner: ALBANIA

COST BENEFIT ANALYSIS According to the financial model that shows the projections of the energy production

from Solar Thermal Completes recourses in Albania, we can comment the following:

2. PROJECT FOR Solar Thermal Completes ALBANIA (repayment period 7 years)

Considering the fact that the total costs (costs + annual credit instalment +

depreciation) are higher than the incomes, this project is not profitable for this period of analysing and this capacity of energy production (kWh). It means that the basic investment for realization of this project is too much expensive.

• Financial rate of return

The financial rate of return is negative ( out of range - #NUM%) for the discount rate (15%), which means that the project will realize more costs than incomes, i.e. the investment is non-profitable.

20


Solar Thermal Completes ALBANIA (repayment period 7 years)

in denars in EUR

DEN/EUR 61,7


Building construction 15.425.000 250.000

- building and crafty activities 15.425.000 250.000





EQUIPMENT 80.210.000 1.300.000

equipment 80.210.000 1.300.000

0 0

- tax 0 0



- custom 0% 0 0

- tax 18% 0 0

VECHICLES 3.085.000 50.000

- invoice value with assemblage and transport 3.085.000 50.000

- custom 0 0

- tax 18% 0 0

OTHER 3.085.000 50.000



- training 0 0


- interest 0 0

- other costs 0 0




21



in denars in EUR



48.934.516,80 793.104 80,00%

BUILDING CONSTRUCTION 0,0 0 0,00%

WORKING CAPITAL

12.233.629,20 198.276 20,00%

TOTAL BANK CREDIT 61.168.146,0 991.380,0 100,00% Table 4. Sales in EUR after investment


Quantity (kWh) 29.000 550.000 1.100.000 1.122.000 1.122.000 1.122.000 1.122.000

Price per unit In Euro 0,075 0,08 0,09 0,095 0,1 0,1 0,1 Value= Product unit * price per unit 2.175 44.000 99.000 106.590 112.200 112.200 112.200

Quantity

Price per unit


in denars in EUR


funds resources

BANKING CREDITS 61.168.146,0 991.380,0 60,00%

- Bank 61.168.146,0 991.380,0 60,00%


- World Bank 0,0 0,0 0,00%



OWN SOURCES 40.778.764,0 660.920,0 40,00%



- SEAF 0,0 0,0 0,00%




0,0 0,0 0,00%

0,0 0,0 0,00%


22

Value= Product unit * price per unit

Quantity

Quantity


Incomes from other activities

TOTAL IN EUR 2.175 44.000 99.000 106.590 112.200 112.200 112.200

Domestic market (in % from total) 100% 100% 100% 100% 100% 100% 100%

Foreign market (in % from total) 0% 0% 0% 0% 0% 0% 0% Table 5. Total costs after investment

Costs for energy

Maintanance costs

1.000,00 50.000,00 100.000,00 105.000,00 107.000,00 107.000,00 107.000,00

Indirect costs

Other costs 100 500 10.000,00 10.000,00 11.000,00 11.000,00 11.000,00

Total costs in EUR

1.100

50.500

110.000

115.000

118.000

118.000

118.000



Total raw materials

Total raw materials - domestic

-

-

-

-

-

-

-


-

-

-

-

-

-

-

Salary costs Salary costs for regular employees Compensation costs for part time jobs

23




(before and after investment) exchange for EUR 61,7 61,7 61,7 61,7 61,7

in EUR

2007 2008 2009 2010 2011

AFTER INVESTMENT 2012 2013 Incomes from domestic market

2.175

44.000

99.000

106.590

112.200

112.200

112.200

Incomes from export

-

-

-

-

-

-

-

-

Total incomes

2.175

44.000

99.000

106.590

112.200

112.200

112.200 Costs from domestic market

1.100

50.500

110.000

115.000

118.000

118.000

118.000

Costs from foreign market

-

-

-

-

-

-

-

-


1.100

50.500

110.000

115.000

118.000

118.000

118.000


1.075

(6.500)

(11.000)

(8.410)

(5.800)

(5.800)

(5.800)

GROWTH AND FINANCIAL CALCULATIONS Incomes from domestic market

2.175

44.000

99.000

106.590

112.200

112.200

112.200

Incomes from export

-

-

-

-

-

-

- -

Total incomes

2.175

44.000

99.000

106.590

112.200

112.200

112.200 Costs from domestic market

1.100

50.500

110.000

115.000

118.000

118.000

118.000


-

-

-

-

-

-

-

-


1.100

50.500

110.000

115.000

118.000

118.000

118.000


1.075

(6.500)

(11.000)

(8.410)

(5.800)

(5.800)

(5.800)



exchange for EUR 61,7 61,7 61,7 61,7 61,7

in EUR

2007 2008 2009 2010 2011


24

Cash needed 0 0 1.800 3.800 4.000

(as % of increased income) 22 440 990 1.066 1.122

Receivables from buyers 1% 1% 1% 1% 1% (number of collecting days/ increased income) 30 179 3.616 8.137 8.761

Inventories 30 30 30 30 30 Materials and spare parts (raw materials) 0 (number of collecting days/ increased costs and inventories) 30 0 0 0 0

Finished and semifinished products 0 30 30 30 30 (number of collection days/ increased income) 0 0 0 0 0

Final product 0 30 30 30 30 (number of collection days/ increased income) 30 178,8 3.616,4 8.137,0 8.760,8

Other 30 30 30 30 30

(% of increased income) 0 0 0 0 0

Increased current assets 379,3 7.672,9 17.264,0 18.587,5 19.565,8


Liabilities toward suppliers 90 4.151 9.041 9.452 9.699 (number of collection days/ increased costs) 30 30 30 30 30

Salary liabilities

-

-

-

-

- (number of pay out days/increased salaries) 30 30 30 30 30

Depreciation

9.781

9.781

9.781

9.781

9.781 ( number of calculation days/annual depreciation) 30 30 30 30 30

Other 95 1.919 4.317 4.648 4.893


Increased short term liabilities 9.966 15.850 23.139 23.881 24.372 ADDITIONAL WORKING CAPITAL -9.587 -8.177 -5.875 -5.293 -4.806 INCREASING OF ADDITIONAL WORKING CAPITAL -9.587 1.409 2.302 582 487



in EUR

2006 2007 2008 2009 2010 2011 2012 2013

Project costs:

Total project costs: -1.652.302,4 0,0 0,0 0,0 0,0 0,0 0,0 0,0

Increased income:

Domestic incomes 0,0 2.175,0 44.000,0 99.000,0 106.590,0 112.200,0 112.200,0

Foreign incomes 0,0 0,0 0,0 0,0 0,0 0,0 0,0

Total increase income 0,0 2.175,0 44.000,0 99.000,0 106.590,0 112.200,0 112.200,0

25

Incresed operational costs Costs from domestic market 0,0 1.100,0 50.500,0 110.000,0 115.000,0 118.000,0 118.000,0 Costs from foregin market 0,0 0,0 0,0 0,0 0,0 0,0 0,0 Total increased operational costs 0,0 0,0 1.100,0 50.500,0 110.000,0 115.000,0 118.000,0 118.000,0 Increased gross working profit 0,0 0,0 1.075,0 -6.500,0 -11.000,0 -8.410,0 -5.800,0 -5.800,0

INCREASED NET PROFIT -1.869.430,4 1.075,0 -6.500,0 -11.000,0 -8.410,0 -5.800,0 -5.800,0 -5.800,0

FINANCIAL RATE OF RETURN #NUM!

NET PRESENT VALUE -

1.453.223,7

(discount rate) 15%


Amount in EUR


Credit amount 991.380



Amount of annual instalment 247.845

Interest 8,00%


1 991.380 - 79.310 79.310

2 991.380 247.845 79.310 327.155

3 743.535 247.845 59.483 307.328

4 495.690 247.845 39.655 287.500

5 247.845 247.845 19.828 267.673

Total 991.380 277.586 1.268.966 Table 10. Calculation of Depreciation


1 Building - old - 0%

-

2 Building - new 1.100.000 4,0%

44.000

3 Equipment - old 0%

-

4 Equipment - new 550.000,0 10%

55.000

5 Subsidiary equipment -old 0,00%

-

6 Subsidiary equipment -new 0,0

-

7 Vechicles - old 0%

26

-

8 Vechicles - new 50.000,0 20%

10.000

9 Other - old - 0%

-

10 Other - new 50.000 20,0% 10.000,00

11 TOTAL - OLD -

12 TOTAL - NEW

119.000,00

13 ALL TOTAL

119.000,00 Table 11. Sensibility of Rate of Profitability



Changes in % on 5 variables Foreign incomes 0% with the following presumptions:


in EUR Proce of raw materials on foreign market 0%


2006 2007 2008 2009 2010 2011 Project costs (Investment):


Increased income

Domestic income 0.0 1.957,5 39.600,0 89.100,0 95.931,0 100.980,0

Foreign income 0.0 0,0 0,0 0,0 0,0 0,0 Total increased income 0.0 1.957,5 39.600,0 89.100,0 95.931,0 100.980,0 Increased oeprational costs Costs for domestic market 0.0 1.100,0 50.500,0 110.000,0 115.000,0 118.000,0 Costs from foreign market 0.0 0,0 0,0 0,0 0,0 0,0 Total increased operational costs 0.0 1.100,0 50.500,0 110.000,0 115.000,0 118.000,0 Increased gross working profit 0.0 857,5 -10.900,0 -20.900,0 -19.069,0 -17.020,0 INCREASED NET PROFIT -1.652.302,4 857,5 -10.900,0 -20.900,0 -19.069,0 -17.020,0

FINANCIAL RATE OF RETURN #NUM! NET PRESENT VALUE

-1.472.091,7

(discount rate) 15%

27



EUR

2007 2008 2009 2010 2011 2009 2009

ASSETS:

Current assets

Surplus of cash -818.892 148.013 148.013 148.013 148.013 148.013 148.013

Cash from working 22 440 990 1.066 1.122 1.122 1.122 Receivables for buyers 179 3.616 8.137 8.761 9.222 9.222 9.222

Inventories 179 3.616 8.137 8.761 9.222 9.222 9.222

Other 0 0 0 0 0 0 0

Total current assets -815.075 160.206 165.901 167.062 167.579 167.579 158.357

Net fixed assets 1.650.000 1.640.219 1.630.438 1.620.658 1.610.877 1.601.096 1.591.315

Total fixed assets 1.650.000 3.292.522 3.282.741 3.272.960 3.263.179 3.253.398 3.243.617

TOTAL ASSETS 2.477.446 3.442.947 3.438.861 3.430.241 3.635.536 3.625.755 372.916 LIABILITIES AND SHAREHOLDING CAPITAL (NEW)

Liabilities

Deficit of cash 89.611 250.611 250.611 250.611 250.611 250.611 250.611 Short liabilities toward suppliers 2.137 90 4.151 9.041 9.452 9.699 9.699

Other 289 3.522 8.223 9.135 9.867 9.867 9.867

Debts 161.000 -86.845 -334.690 -582.535 -830.380 -830.380 -830.380 Other long term liabilities and reservations 0 0 0 0 0 0 0

TOTAL LIABILITIES 250.990 171.439 -66.815 -313.336 -560.203 -560.203 -560.203


Capital 747.800 747.800 747.800 747.800 747.800 747.800 747.800

Retained annual profit -72.184 -62.601 -50.593 -32.257 -233.378 -13.887 -13.887

Retained profits 0 -72.184 -134.785 -185.378 -217.635 -451.013 -464.900 TOTAL SHAREHOLDING CAPITAL 675.616 613.015 562.422 530.165 296.787 282.900 269.014 TOTAL LIABILITIES AND SHAREHOLDING CAPITAL 926.607 784.454 495.607 216.829 -263.416 -277.303 -291.189


INCOME STATEMENT

in EUR


in country 2.175

44.000

99.000

106.590

112.200

112.200

112.200

28

abroad -

-

-

-

-

-

-

-

Total sale 2.175

44.000

99.000

106.590

112.200

112.200

112.200


Raw materials

in country -

-

-

-

-

-

- -

abroad -

-

-

-

-

-

-

-

Gross salaries -

-

-

-

-

-

- -

Other costs 1.113

51.080

111.262

116.320

119.354

119.354

119.354

Total costs 1.113

51.080

111.262

116.320

119.354

119.354

119.354

Depreciation: Total

depreciation -

9.781

9.781

9.781

9.781

9.781

9.781

9.781

Interest costs Total interest

costs

79.310

59.483

39.655

19.828

267.673

- TOTAL

OPERATIONAL INCOMES AND

EXPENDITURES -

90.204

120.343

160.698

145.928

396.808

129.135

129.135

Extra items:

Total extra items

-

-

-

-

-

-

-

-

NET PROFIT BEFORE

TAXATION -

(88.029)

(76.343)

(61.698)

(39.338)

(284.608)

(16.935)

(16.935)

Income tax

15.84

5

13.742

11.106

7.081

51.229

3.048

3.048 (% from the

income before taxation) 18% 18% 18% 18% 18% 18% 18%

NET PROFIT

(72.1

84) (62.601)

(50.593)

(32.257)

(233.378)

(13.887)

(13.887)


REVIEW OF CASH FLOW


61,7 61,7 61,7 61,7 61,7 61,7 61,7

In EUR

2007 2008 2009 2010 2011 2012 2013

SOURCES Own

resources

Retained

29

profit (72.184) (62.601) (50.593) (32.257) (233.378) (13.887) (13.887)

Depreciation

9.781

9.781

9.781

9.781

9.781

9.781

9.781

Cash inflow from regular working

(62.403)

(52.821)

(40.812)

(22.476)

(223.597)

(4.106)

(4.106)

(4.106)

Credits 1.121.700

-

-

-

-

-

-

Total financial activities 1.121.700

- -

-

-

-

-

-

From other sources

-

-

-

New capital from owners

747.800

-

-

-

-

-

New capital from joint ventures -

-

-

-

-

-

-

-

TOTAL SOURCES

1.807.097

(52.821)

(40.812)

(22.476)

(223.597)

(4.106)

(4.106)

DEMAND

Investments Total

investments

1.652.302

-

-

-

-

-

- Financial activities

Instalments

-

247.845

247.845

247.845

247.845

-

- Total financial

activities -

247.845

247.845

247.845

247.845

- TOTAL

DEMAND

1.652.302

247.845

247.845

247.845

247.845

-

- ANNUAL

SURPLUS/DEFICIT OF

CASH 154.795

(300.666)

(288.657)

(270.321)

(471.442)

(4.106)

(4.106)

(4.106) CUMULATIVE SURPLUS/DE

FICIT 154.795

(145.871)

(434.528)

(704.849)

(1.176.291)

(1.180.397)

(1.184.503)

(1.184.503)



in EUR 2006 2007 2008 2009 2010 2011 SOURCES Total export 0 0 0 0 0 0 Credits 991.380 0 0 0 0 0 Total foreign currency sources 991.380 0 0 0 0 0 EXPENDITURES Inevstement costs (planned) 1.652.302 0 0 0 0 0 Import

30

Total import 0 0 0 0 0 0 Credit repayment Instalment, net 0 0 247.845 247.845 247.845 247.845 Interest 0 79.310 59.483 39.655 19.828 267.673 Total credit repayment 0 79.310 307.328 287.500 267.673 515.518 Total foreign currency expenditures 991.380 79.310 307.328 287.500 267.673 515.518 TOTAL NET FOREIGN CURRENCY PROFIT 0 -79.310 -307.328 -287.500 -267.673 -515.518


FINANCIAL RATIOS

in EUR

2007 2008 2009 2010 2011

Liquidity

Current ratio

Current assets (� ) 3.817 12.193 17.888 19.049 19.566

Short term liabilities (B) 379 7.673 17.264 18.588 19.566

� /B 10,06

1,59

1,04

1,02

1,00

Quick ratio

Current assets (� ) 3.817 12.193 17.888 19.049 19.566

Inventories (B) 179 3.616 8.137 8.761 9.222

Short term liabilities (C) 379 7.673 17.264 18.588 19.566

(� -B)/C 0,53

0,53

0,53

0,53

0,53 The share of debt in total capital


Debt (� ) 161.000 -86.845 -334.690 -582.535 -830.380

Total assets (B) 2.477.446 3.442.947 3.438.861 3.430.241 3.635.536

� /B 6% -3% -10% -17% -23%


Debt (� ) 161.000 -86.845 -334.690 -582.535 -830.380


� /B 24% -14% -60% -110% -280%

Debt spreading over

Net income (� ) -72.184 -62.601 -50.593 -32.257 -233.378

Depreciation (B) 9.781 9.781 9.781 9.781 9.781

Interest (C) 79.310 59.483 39.655 19.828


(� +B+C)/ D 0,2 0,0 0,0 0,0 0,1

Profitability

Net profit rate

Net profit (� ) -72.184 -62.601 -50.593 -32.257 -233.378

Income (B) 2.175 44.000 99.000 106.590 112.200

31

� /B -3319% -142% -51% -30% -208%


Net profit (� ) -72.184 -62.601 -50.593 -32.257 -233.378

Total assets (B) 2.477.446 3.442.947 3.438.861 3.430.241 3.635.536

� / B (0,03)

(0,02)

(0,01)

(0,01)

(0,06)

Return of capital

Net profit (� ) -72.184 -62.601 -50.593 -32.257 -233.378

Capital (� ) 675.616 613.015 562.422 530.165 296.787

� / B (0,11)

(0,10)

(0,09)

(0,06)

(0,79)

Working


Sales costs (� ) 1.113 51.080 111.262 116.320 119.354

Inventories (B) 179 3.616 8.137 8.761 9.222

� / B 0,00 0,31 6,28 12,70 12,61


Receivables (� ) 179 3.616 8.137 8.761 9.222

Daily income (B) 6 121 271 292 307

� / B 30 30 30 30 30


Income (� ) 2.175 44.000 99.000 106.590 112.200

Fixed assets (B) 1.650.000 3.292.522 3.282.741 3.272.960 3.263.179

� / B 0,0 0,0 0,0 0,0 0,0


Income (� ) 2.175 44.000 99.000 106.590 112.200

Total assets (B) 2.477.446 3.442.947 3.438.861 3.430.241 3.635.536

� / B 0,0 0,0 0,0 0,0 0,0

33

GREECE EVALUATION OF ECONOMIC JUSTIFIABLENESS FOR INVESTING IN TWO DIFFERENT RES PROJECTS

34

RES Integration Project WP 4 Project Partner: GREECE

COST BENEFIT ANALYSIS

According to the financial model that shows the projections of the energy

production from wind & desalination in island Milos, Greece, we can comment on the following:

3. PROJECT FOR Wind & Desalination (repayment period 5 years)

• Financial rate of return With planned capacity for production of electricity (kWh) and hot water with following explained production per year, recourse for production wind & desalination, the financial rate of return is about 55% (repayment period 5 years, Table 8.). It’s good scenario whit a discount rate (15%) and sensibility rate of profitability for pessimistic conditions (about 30%), which means that the costs for project will be returned between 2nd and 3rd year of exploitation, i.e. the investment is profitable.

• Net profit During the whole repayment period of 5 years, the project shows net profit with tendency of growth from year to year.

• Cash flow The cash flow is positive during the whole repayment period of 5 years that could be positively estimated.

• Liquidity ratio (current) The current liquidity ratio is ~1 (Table 15) that is in accordance with the optimal current liquidity ratio. This means that there are enough current assets to cover the short term liabilities.

• Liquidity ratio (quick) The same situation applies for the quick liquidity ratio when this ratio is about 0,5.

• Profitability ratio This ratio shows tendency of growth form year to year that could be positively estimated. The financial analysis shows that the expected parameters are positive its mean its optimistic scenario.

35


Wind & Desalination GREECE (repayment period 5 years)

in denars in EUR

DEN/EUR 61,7

Preparing activities 0,0 0,0

Building construction 0 0

- building and crafty activities 0 0

- machine installations 0

- electro-installations and telephony 0



EQUIPMENT 197.440.000 3.200.000

wind turbine + infrastructure 74.040.000 1.200.000

desalination facility cost 123.400.000 2.000.000

- tax 0 0



- custom 0% 0 0

- tax 18% 0 0

VECHICLES 0 0

- invoice value with assemblage and transport 0

- custom 0 0

- tax 18% 0 0

OTHER 0 0

- licence rights and patent 0 0


- training 0 0


- interest 0 0

- other costs 0 0




36



in denars in EUR


funds resources

BANKING CREDITS 91.982.977,0 1.490.810,0 43,00%

- Bank 91.982.977,0 1.490.810,0 43,00%


- World Bank 0,0 0,0 0,00%



OWN SOURCES 60.965.461,5 988.095,0 28,50%



- SEAF 0,0 0,0 0,00%



OTHER SOURCES 60.965.461,5 988.095,0 28,50%

60.965.461,5 988.095,0 28,50%

0,0 0,0 0,00%


37


in denars in EUR

DEN/EUR 61,7

Structute of

utilization MACHINES, EQUIPMENT AND TECHNOLOGY 73.586.381,60 1.192.648,00 80,00%

BUILDING CONSTRUCTION 0,0 0,0 0,00%

WORKING CAPITAL 18.396.595,40 298.162,00 20,00%

TOTAL BANK CREDIT 91.982.977,00 1.490.810,00 100,00% Table 4. Sales in EUR after investment

Annual production 2007 2008 2009 2010 2011

Quantity electricity in

kWh 6.307.200 6.307.200 6.307.200 6.307.200 6.307.200

Price per unit 0,2 Euro 0,2 0,2 0,2 0,2 0,2 Value= Product unit * price per unit 1.261.440,00 1.261.440,00 1.261.440,00 1.261.440,00 1.261.440,00

Quantity water in m3 640.800 640.800 640.800 640.800 640.800

Price per unit 1,8 Euro 1,8 1,8 1,8 1,8 1,8 Value= Product unit * price per unit 1.153.440,00 1.153.440,00 1.153.440,00 1.153.440,00 1.153.440,00

Quantity

Quantity

Price per unit Value= Product unit * price per unit 0 0 0 0 0

Incomes from other activities 0 0 0 0 0

TOTAL IN EUR 2.414.880 2.414.880 2.414.880 2.414.880 2.414.880

Domestic market (in % from total) 100% 100% 100% 100% 100%

Foreign market (in % from total) 0% 0% 0% 0% 0% Table 5. Total costs after investment


Amounts in denars 2007 2008 2009 2010 2011

Total raw materials 38.448 38.448 38.448 38.448 38.448

Total raw materials - domestic

-

-

-

-

-


-

-

-

-

-

38

Costs for energy 102.528,00 102.528,00 102.528,00 102.528,00 102.528,00

Maintanance costs

35.534,00

35.534,00

35.534,00

35.534,00

35.534,00

Indirect costs 19.224,00 19.224,00 19.224,00 19.224,00 19.224,00

Other costs 2.755,00 2.755,00 2.755,00 2.755,00 2.755,00

Total costs in EUR

255.653

255.653

255.653

255.653

255.653 Table 6. Annual profit




exchange for EUR 61,7 61,7 61,7 61,7 61,7

in EUR

2007 2008 2009 2010 2011

AFTER INVESTMENT

Incomes from domestic market

2.414.880

2.414.880

2.414.880

2.414.880

2.414.880

Incomes from export -

-

-

-

-

-

Total incomes 2.414.880

2.414.880

2.414.880

2.414.880

2.414.880

1.356.000

Costs from domestic market

255.653

255.653

255.653

255.653

255.653

Costs from foreign market -

-

-

-

-

-

Total operational costs 255.653

255.653

255.653

255.653

255.653

40.000


2.159.227

2.159.227

2.159.227

2.159.227

2.159.227 GROWTH AND FINANCIAL CALCULATIONS

Incomes from domestic market

2.414.880

2.414.880

2.414.880

2.414.880

2.414.880


-

-

-

- -

Total incomes

2.414.880

2.414.880

2.414.880

2.414.880

2.414.880


255.653

255.653

255.653

255.653

255.653


-

-

-

-

-


255.653

255.653

255.653

255.653

255.653


2.159.227

2.159.227

2.159.227

2.159.227

2.159.227

Salary costs

57.600,00

57.600,00

57.600,00

57.600,00

57.600,00 Salary costs for regular employees Compensation costs for part time jobs

39



exchange for EUR 61,7 61,7 61,7 61,7 61,7

in EUR

2007 2008 2009 2010 2011


Cash needed 24.149 24.149 24.149 24.149 24.149


Receivables from buyers 198.483 198.483 198.483 198.483 198.483 (number of collecting days/ increased income) 30 30 30 30 30

Inventories Materials and spare parts (raw materials) 0 3.160 3.160 3.160 3.160 (number of collecting days/ increased costs and inventories) 30 30 30 30 30 Finished and semifinished products 0 0 3.124 3.124 3.124 (number of collection days/ increased income) 0 0 30 30 30

Final product 198.483,3 198.483,3 198.483,3 198.483,3 198.483,3 (number of collection days/ increased income) 30 30 30 30 30

Other 0 0 0 0 0


Increased current assets 424.275,5 427.399,7 427.399,7 427.399,7 427.399,7


Liabilities toward suppliers 21.013 21.013 21.013 21.013 21.013 (number of collection days/ increased costs) 30 30 30 30 30

Salary liabilities

4.734

4.734

4.734

4.734

4.734 (number of pay out days/increased salaries) 30 30 30 30 30

Depreciation

26.301

26.301

26.301

26.301

26.301 ( number of calculation days/annual depreciation) 30 30 30 30 30

Other 105.303 105.303 105.303 105.303 105.303


Increased short term liabilities 157.351 157.351 157.351 157.351 157.351 ADDITIONAL WORKING CAPITAL 266.924 266.924 270.048 270.048 270.048 INCREASING OF ADDITIONAL WORKING CAPITAL 266.924 266.924 3.124 0 0

40



in EUR

2006 2007 2008 2009 2010 2011

Project costs:

Total project costs: -3.466.924,1 0,0 0,0 0,0 0,0 0,0

Increased income:

Domestic incomes 0,0 2.414.880,0 2.414.880,0 2.414.880,0 2.414.880,0 2.414.880,0

Foreign incomes 0,0 0,0 0,0 0,0 0,0 0,0 Total increase income 0,0 2.414.880,0 2.414.880,0 2.414.880,0 2.414.880,0 2.414.880,0 Incresed operational costs Costs from domestic market 0,0 255.652,8 255.652,8 255.652,8 255.652,8 255.652,8 Costs from foregin market 0,0 0,0 0,0 0,0 0,0 0,0 Total increased operational costs 0,0 255.652,8 255.652,8 255.652,8 255.652,8 255.652,8 Increased gross working profit 0,0 2.159.227,2 2.159.227,2 2.159.227,2 2.159.227,2 2.159.227,2 INCREASED NET PROFIT -3.466.924,1 2.159.227,2 2.159.227,2 2.159.227,2 2.159.227,2 2.159.227,2

FINANCIAL RATE OF RETURN 55% NET PRESENT VALUE 3.279.252,5

(discount rate) 15% Table 9. Review of credit liabilities

Amount in EUR


Credit amount 1,490,810



Amount of annual instalment 372,703

Interest 8,00%


1 1.490.810 - 119,265 119,265

2 1.490.810 372,703 119,265 491,967

3 1.118.108 372,703 89,449 462,151

4 745.405 372,703 59,632 432,335

5 372.703 372,703 29,816 402,519

Total 1.490.810 417,427 1,908,237

41

Table 10. Calculation of Depreciation



2 Building - new - 4,0% -


4 Equipment - new 3.200.000,0 10% 320.000




8 Vechicles - new 0,0 -


10 Other - new - 0% -

11 TOTAL - OLD -

12 TOTAL - NEW 320.000,00

13 ALL TOTAL 320.000,00 Table 11. Sensibility of Rate of Profitability









Increased income

Domestic income 0,0 1.690.416,0 1.690.416,0 1.690.416,0 1.690.416,0 1.690.416,0

Foreign income 0,0 0,0 0,0 0,0 0,0 0,0 Total increased income 0,0 1.690.416,0 1.690.416,0 1.690.416,0 1.690.416,0 1.690.416,0 Increased oeprational costs Costs for domestic market 0,0 255.652,8 255.652,8 255.652,8 255.652,8 255.652,8 Costs from foreign market 0,0 0,0 0,0 0,0 0,0 0,0 Total increased operational costs 0,0 255.652,8 255.652,8 255.652,8 255.652,8 255.652,8 Increased gross working profit 0,0 1.434.763,2 1.434.763,2 1.434.763,2 1.434.763,2 1.434.763,2

42

INCREASED NET PROFIT -3.466.924,1 1.434.763,2 1.434.763,2 1.434.763,2 1.434.763,2 1.434.763,2

FINANCIAL RATE OF RETURN 30% NET PRESENT VALUE 1.167.499,8

(discount rate) 15%



EUR

2007 2008 2009 2010 2011

ASSETS:

Current assets

Surplus of cash -12.987 148.013 1.302.725 2.678.468 4.078.661

Cash from working 24.149 24.149 24.149 24.149 24.149

Receivables for buyers 198.483 198.483 198.483 198.483 198.483

Inventories 201.643 204.768 204.768 204.768 204.768

Other 0 0 0 0 0

Total current assets 414.413 575.413 1.730.125 3.105.868 4.301.293

Net fixed assets 3.200.000 3.173.699 3.147.397 3.121.096 3.094.795

Total fixed assets 3.200.000 6.640.623 6.614.321 6.588.020 6.561.719

TOTAL ASSETS 7.055.035 7.189.734 8.318.145 9.667.587 4.515.852 LIABILITIES AND SHAREHOLDING CAPITAL (NEW)

Liabilities

Deficit of cash 89.611 250.611 250.611 250.611 250.611 Short liabilities toward suppliers 2.137 21.013 21.013 21.013 21.013

Other 403.263 406.387 406.387 406.387 406.387

Debts 161.000 -211.703 -584.405 -957.108 -1.329.810 Other long term liabilities and reservations 0 0 0 0 0

TOTAL LIABILITIES 674.886 466.308 93.606 -279.097 -651.799


Capital 107.400 107.400 107.400 107.400 107.400

Retained annual profit 1.648.796 1.673.246 1.697.695 1.722.144 1.746.594

Retained profits 0 1.648.796 3.322.042 5.019.737 6.741.881 TOTAL SHAREHOLDING CAPITAL 1.159.111 1.756.196 3.429.442 5.127.137 6.849.281 TOTAL LIABILITIES AND SHAREHOLDING CAPITAL 1.646.186 2.431.083 3.895.750 5.220.743 6.570.185

43


INCOME STATEMENT

in EUR

2006 2007 2008 2009 2010 2011 Sales and other incomes:

in country 2.414.880

2.414.880

2.414.880

2.414.880 2.414.880 2.414.880

abroad -

-

-

-

-

-

Total sale 258.587

258.587

258.587

258.587 258.587 258.587


Raw materials

in country 26.301

26.301

26.301

26.301

26.301

26.301

abroad

Gross salaries 119.265

89.449

59.632

29.816

Other costs

Total costs

Depreciation:

Total depreciation 26.301

26.301

26.301

26.301

26.301

26.301

Interest costs Total interest

costs 119.265

89.449

59.632

29.816

TOTAL OPERATIONAL INCOMES AND

EXPENDITURES

- 404.153

374.336

344.520 314.704 284.888

Extra items:

Total extra items -

-

-

-

-

-

NET PROFIT BEFORE TAXATION

-

2.010.727

2.040.544

2.070.360 2.100.176 2.129.992

Income tax (361.931)

(367.298)

(372.665)

(378.032)

(383.399)

(236.206)

(% from the income before taxation) 18% 18% 18% 18% 18%

NET PROFIT 1.648.796

1.673.246

1.697.695 1.722.144 1.746.594

44


REVIEW OF CASH FLOW


61,7 61,7 61,7 61,7 61,7

in EUR

2007 2008 2009 2010 2011

SOURCES

Own resources

Retained profit

1.648.796

1.673.246

1.697.695

1.722.144 1.746.594

Depreciation

26.301

26.301

26.301

26.301

26.301 Cash inflow from regular working

201.753

212.835

1.675.098

1.699.547

1.723.996

Credits

1.490.810

-

-

- -

Total financial activities

1.490.810

- -

- -

From other sources 988.095 New capital from owners

988,095 -

-

- -


-

-

-

-

-

TOTAL SOURCES

4.154.003

1.699.547

1.723.996

1.748.446 1.772.895

DEMAND Investments

Total investments

3.466.924

-

-

-

-


Instalments

-

372.703

372.703

372.703 372.703


372.703

372.703

372.703

372.703

TOTAL DEMAND

3.466.924

372.703

372.703

372.703 372.703 ANNUAL SURPLUS/DEFICIT OF CASH

687,079

1,326,845

1,351,294

1,375,743 1,400,192


687,079

2,013,923

3,365,217

4,740,960 6,141,153

45



in EUR 2006 2007 2008 2009 2010 2011 SOURCES Total export 0 0 0 0 0 0 Credits 1.490.810 0 0 0 0 0 Total foreign currency sources 1.490.810 0 0 0 0 0 EXPENDITURES Inevstement costs (planned) 3.466.924 0 0 0 0 0 Import Total import 0 0 0 0 0 0 Credit repayment Instalment, net 0 0 372.703 372.703 372.703 372.703 Interest 0 119.265 89.449 59.632 29.816 0 Total credit repayment 0 119.265 462.151 432.335 402.519 372.703 Total foreign currency expenditures 1.490.810 119.265 462.151 432.335 402.519 372.703 TOTAL NET FOREIGN CURRENCY PROFIT 0 -119.265 -462.151 -432.335 -402.519 -372.703


FINANCIAL RATIOS

in EUR

2007 2008 2009 2010 2011

Liquidity

Current ratio

Current assets (� ) 427.400 427.400 427.400 427.400 222.632

Short term liabilities (B) 424.275 427.400 427.400 427.400 427.400

� /B 1,01 1,00

1,00

1,00

0,52

Quick ratio

Current assets (� ) 427.400 427.400 427.400 427.400 222.632

Inventories (B) 201.643 204.768 204.768 204.768 204.768

Short term liabilities (C) 424.275 427.400 427.400 427.400 427.400

(� -B)/C 0,52 0,52

0,52

0,52

0,52

The share of debt in total capital


Debt (� ) 161.000 -211.703 -584.405 -957.108 -1.329.810

46

Total assets (B) 7.055.035 7.189.734 8.318.145 9.667.587 4.515.852

� /B 2% -3% -7% -10% -29%


Debt (� ) 161.000 -211.703 -584.405 -957.108 -1.329.810

Shareholding capital (B) 1.756.196 3.429.442 5.127.137 6.849.281 8.595.875

� /B 9% -6% -11% -14% -15%

Debt spreading over

Net income (� ) 1.648.796 1.673.246 1.697.695 1.722.144 1.746.594

Depreciation (B) 26.301 26.301 26.301 26.301 26.301

Interest (C) 119.265 89.449 59.632 29.816


(� +B+C)/ D 15,0 3,9 4,1 4,4 4,8

Profitability

Net profit rate

Net profit (� ) 1.648.796 1.673.246 1.697.695 1.722.144 1.746.594

Income (B) 2.414.880 2.414.880 2.414.880 2.414.880 2.414.880

� /B 68% 69% 70% 71% 72%


Net profit (� ) 1.648.796 1.673.246 1.697.695 1.722.144 1.746.594

Total assets (B) 7.055.035 7.189.734 8.318.145 9.667.587 4.515.852

� / B 0,23 0,23

0,20

0,18

0,39

Return of capital

Net profit (� ) 1.648.796 1.673.246 1.697.695 1.722.144 1.746.594

Capital (� ) 1.756.196 3.429.442 5.127.137 6.849.281 8.595.875

� / B 0,94 0,49

0,33

0,25

0,20

Working


Sales costs (� ) 258.587 258.587 258.587 258.587 258.587

Inventories (B) 201.643 204.768 204.768 204.768 204.768

� / B 0,00 1,26 1,26 1,26 1,26


Receivables (� ) 198.483 198.483 198.483 198.483 198.483

Daily income (B) 6.616 6.616 6.616 6.616 6.616

� / B 30 30 30 30 30


Income (� ) 2.414.880 2.414.880 2.414.880 2.414.880 2.414.880

Fixed assets (B) 3.200.000 6.640.623 6.614.321 6.588.020 6.561.719

� / B 0,0 0,4 0,4 0,4 0,4


Income (� ) 2.414.880 2.414.880 2.414.880 2.414.880 2.414.880

Total assets (B) 7.055.035 7.189.734 8.318.145 9.667.587 4.515.852

� / B 0,3 0,3 0,3 0,2 0,5

47

RES Integration Project WP 4 Project Partner: GREECE


According to the financial model that shows the projections of the energy production

from geothermal recourses in island Milos, Greece, we can comment on the following:

4. PROJECT FOR Geothermal project Thiafes (repayment period 7 years)

• Financial rate of return With planned capacity for production of heat and coldness (kWh) with following explained production per year, with geothermal recourse, the financial rate of return is about 22% (analysis for period of 7 years, Table 8.). For the discount rate (15%) it’s a good scenario, where also, analysis is made for sensibility rate of profitability for pessimistic conditions (10% minus of incomes) and result is 17% financial rate of return for that sensibility analysis. General conclusion is that the costs for this project will be returned between 5th and 6th year of exploitation i.e. the investment is profitable.

• Net profit During the whole repayment period of 7 years, the project shows net profit with tendency of growth from year to year.

• Cash flow The cash flow is positive during the whole repayment period of 5 years that could be positively estimated.

• Liquidity ratio (current) The current liquidity ratio is ~1 (Table 15) that is in accordance with the optimal current liquidity ratio. This means that there are enough current assets to cover the short term liabilities.

• Liquidity ratio (quick) The same situation applies for the quick liquidity ratio when this ratio is about 0,5.

• Profitability ratio This ratio shows tendency of growth form year to year that could be positively estimated.

48


Geothermal project Thiafes (repayment period 7 years)

in denars in EUR

DEN/EUR 61,7


Building construction + Equipment 30,850,000 500,000

- building and crafty activities 0 0





Connections to network 24,680,000 400,000


- custom 0 0

- tax 0 0



- custom 0% 0 0

- tax 18% 0 0

Drilling 2,776,500 45,000

- invoice value 0 0

- custom 0 0

- tax 18% 0 0

NETWORK 10,797,500 175,000



- training 0 0


- interest 0 0

- other costs 0 0

Other capital costs 0 0 TOTAL PLANNED COSTS FOR FIXED ASSETS 55,530,000 1,120,000

Funds planned for working capital 33,432

TOTAL REQUIRED FUNDS 55,530,000 1,153,432

49



in denars in EUR



22.197.192,00 359.760,00 80,00%

BUILDING CONSTRUCTION 0,00 0,00 0,00%

WORKING CAPITAL

5,549,298.00 89.940,00 20,00%

TOTAL BANK CREDIT 27.746.490,00 449.700,00 100,00% Table 4. Sales in EUR after investment


Quantity

(For calories in

kWh) 1,109,760 1,109,760 1,109,760 1,109,760 1,109,760 1,109,760 1,109,760

Price per unit 0,2 Euro 0,2 0,2 0,2 0,2 0,2 0,2 0,2 Value= Product unit * price per unit 223.062,00 223.062,00 223.062,00 223.062,00 223.062,00 223.062,00 223.062,00


in denars in EUR


funds resources

BANKING CREDITS 27,746,141.4 449,694.4 38.89%

- Bank 27,746,141.4 449,694.4 38.89%

- Commercial Banks 0.0 0.0 0.00%

- World Bank 0.0 0.0 0.00%

- European Bank 0.0 0.0 0.00%

- Other resources 0.0 0.0 0.00%

OWN SOURCES 21,404,166.2 346,907.1 30.00%

- preparatory investments 21,404,166.2 346,907.1 30.00%

- additional investments 0.0 0.0 0.00%

- SEAF 0.0 0.0 0.00%

-from accumulation 0.0 0.0 0.00%

- from depreciation 0.0 0.0 0.00%

OTHER SOURCES 22,196,913.1 359,755.5 31.11%

22,196,913.1 359,755.5 31.11%

0.0 0.0 0.00%

TOTAL FINANCAIL SOURCES 49,150,307.6 1,156,356.9 100.00%

50

Quantity

(For frigories in

kWh) 924,800 924,800 924,800 924,800 924,800 924,800 924,800

Price per unit 0,2 Euro 0,2 0,2 0,2 0,2 0,2 0,2 0,2 Value= Product unit * price per unit 184.960,00 184.960,00 184.960,00 184.960,00 184.960,00 184.960,00 184.960,00

Quantity

Quantity

Price per unit Value= Product unit * price per unit 0 0 0 0 0 0 0

Incomes from other activities 0 0 0 0 0 0 0

TOTAL IN EUR 406.912,00 406.912,00 406.912,00 406.912,00 406.912,00 406.912,00 406.912,00

Domestic market (in % from total) 100% 100% 100% 100% 100% 100% 100%

Foreign market (in % from total) 0% 0% 0% 0% 0% 0% 0% Table 5. Total costs after investment

Costs for energy

Maintanance costs

13.500,00 13.500,00 13.500,00 13.500,00 13.500,00 13.500,00 13.500,00

Indirect costs

Other costs

Total costs in EUR

72,089

72,089

72,089

72,089

72,089

72,089

72,089



Total raw materials 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 1.000,00 Total raw materials - domestic

-

-

-

-

-

-

-


-

-

-

-

-

-

-

Salary costs

57.600,00

57.600,00

57.600,00

57.600,00

57.600,00

57.600,00

57.600,00 Salary costs for regular employees Compensation costs for part time jobs

51





exchange for EUR 61,7 61,7 61,7 61,7 61,7

in EUR

2007 2008 2009 2010 2011 AFTER INVESTMENT 2012 2013 Incomes from domestic market

406,912

406,912

406,912

406,912

406,912

406,912

406,912

Incomes from export

-

-

-

-

-

-

-

-

Total incomes 406,912

406,912

406,912

406,912

406,912

406,912

406,912


72,089

72,089

72,089

72,089

72,089

72,089

72,089


-

-

-

-

-

-

-

-


72,089

72,089

72,089

72,089

72,089

72,089

72,089


334,823

334,823

334,823

334,823

334,823

334,823

334,823

GROWTH AND FINANCIAL CALCULATIONS Incomes from domestic market

406,912

406,912

406,912

406,912

406,912

406,912

406,912

Incomes from export

-

-

-

-

-

-

- -

Total incomes 406,912

406,912

406,912

406,912

406,912

406,912

406,912


72,089

72,089

72,089

72,089

72,089

72,089

72,089


-

-

-

-

-

-

-

-


72,089

72,089

72,089

72,089

72,089

72,089

72,089


334,823

334,823

334,823

334,823

334,823

334,823

334,823



exchange for EUR 61,7 61,7 61,7 61,7 61,7

in EUR

2007 2008 2009 2010 2011


Cash needed 4,069 4,069 4,069 4,069 4,069


52

Receivables from buyers 33,445 33,445 33,445 33,445 33,445 (number of collecting days/ increased income) 30 30 30 30 30


Finished and semifinished products 0 0 4,816 4,816 4,816 (number of collection days/ increased income) 0 0 30 30 30

Final product 33,444.8 33,444.8 33,444.8 33,444.8 33,444.8 (number of collection days/ increased income) 30 30 30 30 30

Other 0 0 0 0 0


Increased current assets 71,041.0 75,856.5 75,856.5 75,856.5 75,856.5


Liabilities toward suppliers 5,925 5,925 5,925 5,925 5,925 (number of collection days/ increased costs) 30 30 30 30 30

Salary liabilities

4,734

4,734

4,734

4,734

4,734 (number of pay out days/increased salaries) 30 30 30 30 30

Depreciation

9,205

9,205

9,205

9,205

9,205 ( number of calculation days/annual depreciation) 30 30 30 30 30

Other 17,744 17,744 17,744 17,744 17,744


Increased short term liabilities 157.351 37,609 37,609 37,609 37,609

ADDITIONAL WORKING CAPITAL 266.924 33,432 38,248 38,248 38,248 INCREASING OF ADDITIONAL WORKING CAPITAL 266.924 33,432 4,816 0 0



in EUR

2006 2007 2008 2009 2010 2011 2012 2013

Project costs: Total project costs: -1,153,432.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Increased income: Domestic incomes 0.0 406,912.0 406,912.0 406,912.0 406,912.0 406,912.0 406,912.0 406,912.0 Foreign incomes 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total increase 0.0 406,912.0 406,912.0 406,912.0 406,912.0 406,912.0 406,912.0 406,912.0

53

income

Incresed operational costs Costs from domestic market 0.0 72,088.7 72,088.7 72,088.7 72,088.7 72,088.7 72,088.7 72,088.7 Costs from foregin market 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total increased operational costs 0,0 72,088.7 72,088.7 72,088.7 72,088.7 72,088.7 72,088.7 72,088.7 72,088.7 Increased gross working profit 0,0 334,823.3 334,823.3 334,823.3 334,823.3 334,823.3 334,823.3 334,823.3 334,823.3 INCREASED NET PROFIT -1,153,432.3 334,823.3 334,823.3 334,823.3 334,823.3 334,823.3 334,823.3 334,823.3 334,823.3

FINANCIAL RATE OF RETURN 22% NET PRESENT VALUE 208,324.6

(discount rate) 15%


Amount in EUR


Credit amount 449,700



Amount of annual instalment 112,425

Interest 8,00%


1 449,700 - 35,976 35,976

2 449,700 112,425 35,976 148,401

3 337,275 112,425 26,982 139,407

4 224,850 112,425 17,988 130,413

5 112,425 112,425 8,994 121,419

Total 1.490.810 125,916 575,616 Table 10. Calculation of Depreciation



2 Building - new - 4,0% -


4 Equipment - new 1.120.000,00 10%

112.000,00


54





10 Other - new - 0% -

11 TOTAL - OLD -

12 TOTAL - NEW 112,000.00

13 ALL TOTAL 112,000.00 Table 11. Sensibility of Rate of Profitability








Total project costs -1,153,432.3 0.0 0.0 0.0 0.0 0.0

Increased income

Domestic income 0.0 366,220.8 366,220.8 366,220.8 366,220.8 366,220.8

Foreign income 0.0 0.0 0.0 0.0 0.0 0.0 Total increased income 0.0 366,220.8 366,220.8 366,220.8 366,220.8 366,220.8 Increased oeprational costs Costs for domestic market 0.0 72,088.7 72,088.7 72,088.7 72,088.7 72,088.7 Costs from foreign market 0.0 0.0 0.0 0.0 0.0 0.0 Total increased operational costs 0.0 72,088.7 72,088.7 72,088.7 72,088.7 72,088.7 Increased gross working profit 0.0 294,132.1 294,132.1 294,132.1 294,132.1 294,132.1 INCREASED NET PROFIT -1,153,432.3 294,132.1 294,132.1 294,132.1 294,132.1 294,132.1

FINANCIAL RATE OF RETURN 17% NET PRESENT VALUE 61,113.8

(discount rate) 15%

55



EUR

2007 2008 2009 2010 2011 2009 2009

ASSETS:

Current assets

Surplus of cash -301,687 178,198 326,556 482,290 545,835 812,375 966,490

Cash from working 4,069 4,069 4,069 4,069 4,069 4,069 4,069 Receivables for buyers 33,445 33,445 33,445 33,445 33,445 33,445 33,445

Inventories 33,527 38,343 38,343 38,343 38,343 38,343 38,343

Other 0 0 0 0 0 0 0 Total current assets -225,831 254,054 402,413 558,146 621,692 888,231 1,004,004

Net fixed assets 1,120,000 1,110,795 1,101,589 1,092,384 1,083,178 1,073,973 1,064,767

Total fixed assets 1,120,000 2,264,227 2,255,021 2,245,816 2,236,610 2,227,405 2,218,199

TOTAL ASSETS 2,038,396 2,509,076 2,648,229 2,794,757 2,849,097 3,106,431 1,004,004 LIABILITIES AND SHAREHOLDING CAPITAL (NEW)

Liabilities

Deficit of cash 89,611 250,611 250,611 250,611 250,611 250,611 250,611 Short liabilities toward suppliers 2.137 5,925 5,925 5,925 5,925 5,925 5,925

Other 65,116 69,931 69,931 69,931 69,931 69,931 69,931

Debts 161,000 48,575 -63,850 -176,275 -288,700 -297,694 -419,113 Other long term liabilities and reservations 0 0 0 0 0 0 0

TOTAL LIABILITIES 321,652 375,042 262,617 150,192 37,767 28,773 -92,646


Capital 346,900 346,900 346,900 346,900 346,900 346,900 346,900 Retained annual profit 236,828 244,203 251,578 258,953 166,765 266,328 266,328

Retained profits 0 236,828 481,031 732,609 991,562 1,158,327 1,424,655 TOTAL SHAREHOLDING CAPITAL 1.159.111 583,728 827,931 1,079,509 1,338,462 1,505,227 1,771,555 TOTAL LIABILITIES AND SHAREHOLDING CAPITAL 1.646.186 905,380 1,202,974 1,342,127 1,488,655 1,542,995 1,800,329


INCOME STATEMENT

in EUR


in country

56

406,912 406,912 406,912 406,912 406,912 406,912 406,912 406,912

abroad

-

-

-

-

-

-

-

-

Total sale

406,912

406,912

406,912

406,912

406,912

406,912

406,912

406,912 Costs and expenditures

Raw materials

in country

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

abroad

-

-

-

-

-

-

-

-

Gross salaries

58,261

58,261

58,261

58,261

58,261

58,261

58,261

58,261

Other costs

13,655

13,655

13,655

13,655

13,655

13,655

13,655

13,655

Total costs

72,916

72,916

72,916

72,916

72,916

72,916

72,916

72,916

Depreciation:

Total depreciation

9,205

9,205

9,205

9,205

9,205

9,205

9,205

9,205

Interest costs

Total interest costs

35,976

26,982

17,988

8,994

121,419

- TOTAL OPERATIONAL INCOMES AND EXPENDITURES -

118,097

109,103

100,109

91,115

203,540

82,121

82,121

Extra items:

Total extra items

-

-

-

-

-

-

-

-

NET PROFIT BEFORE TAXATION -

288,815

297,809

306,803

315,797

203,372

324,791

324,791

Income tax

(51,987)

(53,606

)

(55,224)

(56,843)

(36,607)

(58,462)

(58,462)

(51,987) (% from the income before taxation) 18% 18% 18% 18% 18% 18% 18% 18%

NET PROFIT

236,828

244,203

251,578

258,953

166,765

266,328

266,328

236,828


REVIEW OF CASH FLOW


61,7 61,7 61,7 61,7 61,7 61,7 61,7

In EUR

2007 2008 2009 2010 2011 2012 2013

SOURCES

Own resources

Retained profit

236,828

244,203

251,578

258,953

166,765

266,328

266,328

Depreciation

57

9,205 9,205 9,205 9,205 9,205 9,205 9,205

Cash inflow from regular working

246,033

253,409

260,784

268,159

175,970

275,534

275,534

275,534

Credits

449.700,00

-

-

-

-

-

-


449.700,00

- -

-

-

161.000

From other sources 359.760,00 New capital from owners 346.900,00 -

-

-

-

-

-


-

-

-

-

-

TOTAL SOURCES 1,042,633

253,409

260,784

268,159

175,970

275,534

275,534

DEMAND

Investments

Total investments 1.153.432

,00

-

-

-

-

-

-


Instalments

-

112,425

112,425

112,425

112,425

8,994

121,419 Total financial activities

112,425

112,425

112,425

112,425

8,994

121,419

TOTAL DEMAND

1,153,432

112,425

112,425

112,425

112,425

8,994

121,419 ANNUAL SURPLUS/DEFICIT OF CASH (110,799)

140.984,0

148.359,0

155.734,0

63.545,0

266.540,0

154.115,0

1.351.294

CUMULATIVE SURPLUS/DEFICIT (110,799)

30.185,0

178.543,0

334.277,0

397.822,0

664.362,0

818.477,0

1.154.712



in EUR 2006 2007 2008 2009 2010 2011 SOURCES Total export 449,700 0 0 0 0 0 Credits 449,700 0 0 0 0 0 Total foreign currency sources EXPENDITURES 1,153,432 0 0 0 0 0 Inevstement costs (planned) Import 0 0 0 0 0 0 Total import Credit repayment 0 0 112,425 112,425 112,425 112,425 Instalment, net 0 35,976 26,982 17,988 8,994 121,419 Interest 0 35,976 139,407 130,413 121,419 233,844 Total credit repayment 449,694 35,976 139,407 130,413 121,419 233,844 Total foreign currency expenditures 449,694 35,976 139,407 130,413 121,419 233,844

TOTAL NET FOREIGN 6 -35,976 -139,407 -130,413 -121,419 -233,844

58

CURRENCY PROFIT


FINANCIAL RATIOS

in EUR

2007 2008 2009 2010 2011

Liquidity

Current ratio

Current assets (� ) 75,856 75,856 75,856 75,856 75,856

Short term liabilities (B) 71,041 75,856 75,856 75,856 75,856

� /B 1.07 1.00 1.00 1.00 1.00

Quick ratio

Current assets (� ) 75,856 75,856 75,856 75,856 75,856

Inventories (B) 33,527 38,343 38,343 38,343 38,343

Short term liabilities (C) 71,041 75,856 75,856 75,856 75,856

(� -B)/C 0.53 0.49 0.49 0.49 0.49 The share of debt in total capital


Debt (� ) 161,000 48,575 -63,850 -176,275 -288,700

Total assets (B) 2,038,396 2,509,076 2,648,229 2,794,757 2,849,097

� /B 8% 2% -2% -6% -10%


Debt (� ) 161,000 48,575 -63,850 -176,275 -288,700

Shareholding capital (B) 583,728 827,931 1,079,509 1,338,462 1,505,227

� /B 28% 6% -6% -13% -19%

Debt spreading over

Net income (� ) 236,828 244,203 251,578 258,953 166,765

Depreciation (B) 9,205 9,205 9,205 9,205 9,205

Interest (C) 35,976 26,982 17,988 8,994

Mature instalment (D) 0 112,425 112,425 112,425 112,425

(� +B+C)/ D 7.8 2.0 2.1 2.3 1.3

Profitability

Net profit rate

Net profit (� ) 236,828 244,203 251,578 258,953 166,765

Income (B) 406,912 406,912 406,912 406,912 406,912

� /B 58% 60% 62% 64% 41%


Net profit (� ) 236,828 244,203 251,578 258,953 166,765

Total assets (B) 2,038,396 2,509,076 2,648,229 2,794,757 2,849,097

� / B 0.12 0.10 0.09 0.09 0.06

Return of capital

Net profit (� ) 236,828 244,203 251,578 258,953 166,765

Capital (� ) 583,728 827,931 1,079,509 1,338,462 1,505,227

59

� / B 0.41 0.29 0.23 0.19 0.11

Working


Sales costs (� ) 72,916 72,916 72,916 72,916 72,916

Inventories (B) 33,527 38,343 38,343 38,343 38,343

� / B 0.00 1.90 1.90 1.90 1.90


Receivables (� ) 33,445 33,445 33,445 33,445 33,445

Daily income (B) 1,115 1,115 1,115 1,115 1,115

� / B 30 30 30 30 30


Income (� ) 406,912 406,912 406,912 406,912 406,912

Fixed assets (B) 1,120,000 2,264,227 2,255,021 2,245,816 2,236,610

� / B 0.0 0.2 0.2 0.2 0.2


Income (� ) 406,912 406,912 406,912 406,912 406,912

Total assets (B) 2,038,396 2,509,076 2,648,229 2,794,757 2,849,097

� / B 0.2 0.2 0.2 0.1 0.1

61

ITALY EVALUATION OF ECONOMIC JUSTIFIABLENESS FOR INVESTING IN THREE DIFFERENT RES PROJECTS

RES Integration Project WP 4

62

Project Partner: ITALY TITLE OF THE PROJECT (Business investment): Solar Thermal System Uptake LOCATION: Mountain Community of Limina HEAD OF CONCRETE PROJECT: TBD SHORT DESCRIPTION OF THE PROJECT (Summary of the idea): The proposal is to install a wide array of Solar Hot Water (SHW) Systems across the Limina community. It is estimated that 1000 roof-top systems could be possible in the near-term future, which could provide the hot water usage for up to half of the inhabitants. In the lower-altitude regions, hot water usage makes up a very large portion of thermal energy demand, as heating is used very sparingly. 1. PREPARATION ACTIVITIES: INVESTIGATIONS (Short description of necessary investigations): Typical hot water consumption in the region is estimated at approximately 50L/day/person, and thus for a residential building containing 3 families, with 9 people in total would result in a system roof-top solar system requiring a daily storage of 450L, with approximately 7 m2 of solar collectors required. A single-dwelling residential building for a family of four (200L tank) would require about 3 m2. The question then becomes to survey the community to find who has the required space on the roofs for such systems, as well as who would have the economic situation to participate in such a scheme. ADMINSTRATIVE PROCEDURE (Short description of necessary activities): For a solar thermal installation on a residential dwelling, no extraordinary permits are required. INITIAL ORGANIZATION ACTIVITIES 1) Establishment within the communes of a working group to promote the uptake of SHW systems 2) Promotion of SHW systems benefits and survey of homeowners for willingness to install systems 3) Establishing SHW system supply agreements ORGANIZATION OF COVERING THE INVESTMENT FINANCE CONSTRUCTION (Planned composition of own resources, national and international funds, banks, etc.): No financing would be expected, that is, own-resources would be required for the systems. Small loans by local banks for certain individuals could be possible. A tax-deduction of 1/3 the cost of the system can be used, which decreases system cost.

63

DEFINITION OF TERMS OF REFERENCE: To be achieved: To install Solar Hot Water Heaters on a significant portion of households to replace hot-water demand from electrical and fossil-fuel heaters. Stakeholders: 1) The communes of Limina (Canolo, Gerace, Gioiosa Ionica, Grotteria, Mammola, Martone, San Giovanni di Gerace), with a potential financial/administrative role. 2) Families and homeowners Financial Resources: 2) Own resources Work Breakdown: 1) Establishment of Limina community “Solar Hot Water Heater Promotion Group”. 2) Promotion of SHW, installation of first promotional systems (12 months). 3) Community surveying/organizing (6 months, concurrent with phase 2). 4) Establishment of supply contracts (6 months, concurrent). 5) Realization of systems across the community (1 to 1.5 years). 6) Operation and Maintenance (continuing thereafter). 7) Continuing work of “promotion group” for homeowners willing to install in the future (continuing thereafter).

64

COST BENEFIT ANALYSIS According to the financial model that shows the projections of project for installation

of a wide array of Solar Hot Water (SHW) Systems for multi-families across the Limina community, in ITALY, we can comment on the following:

5. PROJECT FOR SOLAR THERMAL SYSTEM LUMINIA– ITALY (repayment period 5 years) • Financial rate of return in according with the planned production capacity per year, the financial rate of return is 11% (repayment period 5 years, Table 7.) whit the discount rate (15%) and sensibility rate of profitability with little increasing of production is 13% (Table. 9), that means that the project will realize more incomes than costs, i.e. the investment is profitable for relatively long period (payback period is about 8 years). • Net profit During the whole repayment period of 5 years, the project shows fix net profit which shows the tendency of stabile investment whit out of growing. • Cash flow The cash flow is positive during the whole repayment period of 5 years that could be positively estimated (Tables 11 and 12). • Liquidity ratio (current) The current liquidity ratio is ~1 (Table 15) that is in accordance with the optimal current liquidity ratio. This means that there are enough current assets to cover the short term liabilities. • Liquidity ratio (quick) The same situation applies for the quick liquidity ratio. • Profitability ratio This ratio shows the constant tendency from year to year that could be positively estimated.

65


Multi-Family Building Solar Hot Water Heater Thermosyphon System

in denars in EUR

DEN/EUR 61,7

Preparing activities 12.340 200

Building construction 12.340 200

- building and crafty activities 0




- other activities 353.541 5.730 EQUIPMENT - Wood briquette production plant 353.541 5.730


- custom 0% 0 0

- tax 0% 0 0



- custom 0% 0 0

- tax 18% 0 0

VECHICLES 0


- custom 0 0

- tax 18% 3.659 59

OTHER 3.659 59



- training 0 0


- interest 0 0

- other costs 0 0

Other capital costs 365.881 5.989 TOTAL PLANNED COSTS FOR FIXED ASSETS 170

Funds planned for working capital 365.881 6.160

TOTAL REQUIRED FUNDS 12.340 200

66


Table 3. Sales in EUR after investment

Annual production 2006 2007 2008 2009 2010 Quantity [kWh/year] Electricity Saved [kWh/year] 6.742 6.742 6.742 6.742 6.742

Price per unit (t) (in Euro) 10 10 10 10 10 Value= Product unit * price per unit 66.557 66.557 66.557 66.557 66.557 Quantity [m3] Natural Gas saved [m3] 919 919 919 919 919

Price per unit 41 41 41 41 41 Value= Product unit * price per unit 37.991 37.991 37.991 37.991 37.991

TOTAL IN DEN 104.548 104.548 104.548 104.548 104.548

TOTAL IN EUR 1.694 1.694 1.694 1.694 1.694

Domestic market (in % from total) 100% 100% 100% 100% 100%

Foreign market (in % from total) 0% 0% 0% 0% 0%

Domestic market 1.694 1.694 1.694 1.694 1.694

Foreign market


in denars in EUR


funds resources

BANKING CREDITS 0,0 0,0 0,00%

- Bank 0,0 0,0 0,00%


- World Bank 0,0 0,0 0,00%



OWN SOURCES 256.918,8 4.164,0 67,60%

- preparatory investments 256.918,8 4.164,0 67,60%


- SEAF 0,0 0,0 0,00%



OTHER SOURCES 123.153,2 1.996,0 32,40%

123.153,2 1.996,0 32,40%

0,0 0,0 0,00% TOTAL FINANCAIL SOURCES 256.918,8 6.160,0 100,00%

67

Table 4. Total costs after investment

Costs for energy - - - - -

Maintenance costs 1.851

1.851

1.851

1.851

1.851

Marketing costs

Other costs

Total costs in DEN

1.851

1.851

1.851

1.851

1.851

Total costs in EUR

30

30

30

30

30


Amounts in denars 2006 2007 2008 2009 2010

Total raw materials -

-

-

-

-

Total raw materials - domestic -

-

-

-

-

Total raw materials - foreign -

-

-

-

-

Salary costs

Salary costs for regular employees

Compensation costs for part time jobs

Other costs

68





exchange for EUR 61,7 61,7 61,7 61,7 61,7

in EUR

2006 2007 2008 2009 2010

AFTER INVESTMENT

Incomes from domestic market 1.694

1.694

1.694

1.694

1.694


-

- - -

Total incomes 1.694

1.694

1.694

1.694

1.694

Costs from domestic market 30

30

30

30 30


-

- - -

Total operational costs 30

30

30

30 30

GROSS WORKING INCOMES 1.664

1.664

1.664

1.664

1.664

GROWTH AND FINANCIAL CALCULATIONS

Incomes from domestic market 1.694

1.694

1.694

1.694

1.694


-

- -

-

Total incomes 1.694

1.694

1.694

1.694

1.694

Costs from domestic market 30

30

30

30

30


-

-

-

-

Total operational costs 30

30

30

30

30

GROSS WORKING INCOMES 1.664

1.664

1.664

1.664 1.664

69



exchange for EUR 61,7 61,7 61,7 61,7 61,7

in EUR

2006 2007 2008 2009 2010


Cash needed 17 17 17 17 17


Receivables from buyers 139 139 139 139 139 (number of collecting days/ increased income) 30 30 30 30 30


Finished and semifinished products 0 0 0 0 0 (number of collection days/ increased income) 0 0 30 30 30

Final product 139,3 139,3 139,3 139,3 139,3 (number of collection days/ increased income) 30 30 30 30 30

Other 0 0 0 0 0


Increased current assets 295,5 295,5 295,5 295,5 295,5


Liabilities toward suppliers 2 2 2 2 2 (number of collection days/ increased costs) 30 30 30 30 30

Salary liabilities -

-

-

- -

(number of pay out days/increased salaries) 30 30 30 30 30

Depreciation 49

49

49

49

49

( number of calculation days/annual depreciation) 30 30 30 30 30

Other 74 74 74 74 74


Increased short term liabilities 125 125 125 125 125 ADDITIONAL WORKING CAPITAL 170 170 170 170 170 INCREASING OF ADDITIONAL WORKING CAPITAL 170 0 0 0 0

70



in EUR

2005 2006 2007 2008 2009 2010

Project costs:

Total project costs: -6.159,7 0,0 0,0 0,0 0,0 0,0

Increased income:

Domestic incomes 0,0 1.694,5 1.694,5 1.694,5 1.694,5 1.694,5

Foreign incomes 0,0 0,0 0,0 0,0 0,0 0,0

Total increase income 0,0 1.694,5 1.694,5 1.694,5 1.694,5 1.694,5

Incresed operational costs

Costs from domestic market 0,0 30,0 30,0 30,0 30,0 30,0

Costs from foregin market 0,0 0,0 0,0 0,0 0,0 0,0

Total increased operational costs 0,0 0,0 30,0 30,0 30,0 30,0

Increased gross working profit 0,0 0,0 1.664,5 1.664,5 1.664,5 1.664,5

INCREASED NET PROFIT -6.159,7 1.664,5 1.664,5 1.664,5 1.664,5 1.664,5

FINANCIAL RATE OF RETURN 11%

NET PRESENT VALUE -504,5

(discount rate) 15%

71

Table 8. Calculation of Depreciation



2 Building - new 200 4,0%

8,00


4 Equipment - new 5.730,0 10%

573,00






10 Other - new 59 20,0% 11,86

11 TOTAL - OLD -

12 TOTAL - NEW 592,86

13 ALL TOTAL 592,86

72

Table 9. Sensibility of Rate of Profitability


TESTING THE SENSIBILITY Domestic incomes 5%

Changes in % on 5 variables Foreign incomes 0%

with the following presumptions:


in EUR

Proce of raw materials on foreign market 0%


2005 2006 2007 2008 2009 2010

Project costs (Investment):

Total project costs -6.159,7 0,0 0,0 0,0 0,0 0,0

Increased income

Domestic income 0,0 1.779,2 1.779,2 1.779,2 1.779,2 1.779,2

Foreign income 0,0 0,0 0,0 0,0 0,0 0,0

Total increased income 0,0 1.779,2 1.779,2 1.779,2 1.779,2 1.779,2

Increased oeprational costs

Costs for domestic market 0,0 30,0 30,0 30,0 30,0 30,0

Costs from foreign market 0,0 0,0 0,0 0,0 0,0 0,0 Total increased operational costs 0,0 30,0 30,0 30,0 30,0 30,0 Increased gross working profit 0,0 1.749,2 1.749,2 1.749,2 1.749,2 1.749,2

INCREASED NET PROFIT -6.159,7 1.749,2 1.749,2 1.749,2 1.749,2 1.749,2

FINANCIAL RATE OF RETURN 13%

NET PRESENT VALUE -257,6

(discount rate) 15%

73



EUR

2006 2007 2008 2009 2010

ASSETS:

Current assets

Surplus of cash 0 751 2.124 3.498 4.871

Cash from working 17 17 17 17 17

Receivables for buyers 139 139 139 139 139

Inventories 139 139 139 139 139

Other 0 0 0 0 0

Total current assets 295 1.046 2.420 3.793 5.027

Net fixed assets 5.989 5.941 5.892 5.843 5.794

Total fixed assets 5.989 12.100 12.052 12.003 11.954

TOTAL ASSETS 12.396 13.098 14.423 15.747 5.027 LIABILITIES AND SHAREHOLDING CAPITAL (NEW)

Liabilities

Deficit of cash 0 0 0 0 0 Short liabilities toward suppliers 2 2 2 2 2

Other 293 293 293 293 293

Debts 0 0 0 0 0 Other long term liabilities and reservations 0 0 0 0 0

TOTAL LIABILITIES 295 295 295 295 295


Capital 4.164 4.164 4.164 4.164 4.164

Retained annual profit 1.325 1.325 1.325 1.325 1.325

Retained profits 0 1.325 2.649 3.974 5.298 TOTAL SHAREHOLDING CAPITAL 5.489 6.813 8.138 9.462 10.787 TOTAL LIABILITIES AND SHAREHOLDING CAPITAL 5.784 7.109 8.433 9.758 11.083

74


INCOME STATEMENT

in EUR

2006 2007 2008 2009 2010

Sales and other incomes:

in country

-

1.694

1.694

1.694

1.694

1.694

abroad

-

-

-

-

-

-

Total sale

-

1.694

1.694

1.694

1.694

1.694


Raw materials

in country

-

-

-

-

-

-

abroad

-

-

-

-

-

-

Gross salaries

-

-

-

-

-

-

Other costs

-

30

30

30

30

30

Total costs

-

30

30

30

30

30

Depreciation:

Total depreciation

-

49

49

49

49

49

Interest costs

Total interest costs

-

-

-

- TOTAL OPERATIONAL

INCOMES AND EXPENDITURES

- 79

79

79

79

79

Extra items:

Total extra items -

-

-

-

-

-

NET PROFIT BEFORE TAXATION

- 1.615

1.615

1.615

1.615

1.615

Income tax

(291)

(291)

(291)

(291)

(291) (% from the income before

taxation) 18% 18% 18% 18% 18%

NET PROFIT

1.325

1.325

1.325

1.325

1.325

75


REVIEW OF CASH FLOW


61,7 61,7 61,7 61,7 61,7

in EUR

2006 2007 2008 2009 2010

SOURCES

Own resources

Retained profit

1.325

1.325

1.325

1.325

1.325

Depreciation

49

49

49

49

49 Cash inflow from regular working

1.373

1.373

1.373

1.373

1.373

� � � � � � � � �

Credits

-

-

-

-

Total financial activities -

-

-

From other sources 1996 New capital from owners

4.164

-

-

-


-

-

-

-

-

TOTAL SOURCES

5.537

1.373

1.373

1.373

1.373

DEMAND

Investments

Total investments

6.160

-

-

-

-


Instalments


TOTAL DEMAND

6.160

-

-

-

- ANNUAL SURPLUS/DEFICIT OF CASH

(622)

1.373

1.373

1.373

1.373


(622)

751

2.124

3.498

4.871

76


FINANCIAL RATIOS

in EUR

2006 2007 2008 2009 2010

Liquidity

Current ratio

Current assets (� ) 295 295 295 295 156

Short term liabilities (B) 295 295 295 295 295

� /B 1,00 1,00 1,00 1,00 0,53

Quick ratio

Current assets (� ) 295 295 295 295 156

Inventories (B) 139 139 139 139 139

Short term liabilities (C) 295 295 295 295 295

(� -B)/C 0,53 0,53 0,53 0,53 0,53 The share of debt in total capital


Debt (� ) 0 0 0 0 0

Total assets (B) 12.396 13.098 14.423 15.747 5.027

� /B 0% 0% 0% 0% 0%


Debt (� ) 0 0 0 0 0


� /B 0% 0% 0% 0% 0%

Debt spreading over

Net income (� ) 1.325 1.325 1.325 1.325 1.325

Depreciation (B) 49 49 49 49 49

Interest (C) 0 0 0 0

Mature instalment (D) 0 0 0 0 0

(� +B+C)/ D #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Profitability

Net profit rate

Net profit (� ) 1.325 1.325 1.325 1.325 1.325

Income (B) 1.694 1.694 1.694 1.694 1.694

� /B 78% 78% 78% 78% 78%


Net profit (� ) 1.325 1.325 1.325 1.325 1.325

Total assets (B) 12.396 13.098 14.423 15.747 5.027

� / B 0,11 0,10 0,09 0,08 0,26

Return of capital

Net profit (� ) 1.325 1.325 1.325 1.325 1.325

Capital (� ) 5.489 6.813 8.138 9.462 10.787

� / B 0,24 0,19 0,16 0,14 0,12

Working

77


Sales costs (� ) 30 30 30 30 30

Inventories (B) 139 139 139 139 139

� / B 0,00 0,22 0,22 0,22 0,22


Receivables (� ) 139 139 139 139 139

Daily income (B) 5 5 5 5 5

� / B 30 30 30 30 30


Income (� ) 1.694 1.694 1.694 1.694 1.694

Fixed assets (B) 5.989 12.100 12.052 12.003 11.954

� / B 0,0 0,1 0,1 0,1 0,1


Income (� ) 1.694 1.694 1.694 1.694 1.694

Total assets (B) 12.396 13.098 14.423 15.747 5.027

� / B 0,1 0,1 0,1 0,1 0,3

78

RES Integration Project WP 4 Project Partner: ITALY

TITLE OF THE PROJECT (Business investment): Centralized PV Projects LOCATION: Mountain Community of LUmina HEAD OF CONCRETE PROJECT: TBD SHORT DESCRIPTION OF THE PROJECT (Summary of the idea): To create three 1MW centralized PV power plant in three empty fields, to take advantage of the Italian PV feed-in tariff. The projects could be wholly private, partly owned by the communes, or entirely owned by the communes.

PREPARATION ACTIVITIES:

INVESTIGATIONS (Short description of necessary investigations): Proper sites must be chosen. Land-owners have expressed an interest in renting unused land. In fact, much land is unused, and finding a site suitable for a 1MW plant (approximately 1.6 ha) would not be difficult for three of such plants, but would require a more detailed surveying. Afterwards, the land-owners could be contacted. Furthermore, state-owned land could also be considered by the communes. Exact insolation measurements would be required to begin. ADMINSTRATIVE PROCEDURE (Short description of necessary activities): According to the Italian PV feed-in law, the following permits are required to begin the work: 1) Request to the GSE (Gestore della Rete di Trasmissione Nazionale – “National Transmission Grid Operator), or the local grid operator, to connect the plant to the grid. 2) Installation permit from the commune . 3) Environmental permit – ONLY if the plant is in a region with environmental constraints (e.g. historical site or protected view point). 4) Request the PV feed-in tariff to the GSE INITIAL ORGANIZATION ACTIVITIES 1) Detailed survey of available fields across the community. 2) Meetings with local landowners association to assess local participation. 3) Establishing PV and equipment supply. ORGANIZATION OF COVERING THE INVESTMENT FINANCE CONSTRUCTION (Planned composition of own resources, national and international funds, banks, etc.): Financing available from banking institutions, in addition funding provided by a private-public consortium if the communes were also own the plants.

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DEFINITION OF TERMS OF REFERENCES: To be achieved: To create three independent 1 MW PV plants in the Mountain Community of Limina. Stakeholders: 1) The plant owner 2) The communes of Limina (Canolo, Gerace, Gioiosa Ionica, Grotteria, Mammola, Martone, San Giovanni di Gerace), with a potential financial/administrative role. 3) The land owners. 4) Financing institutions 5) Electrical maintenance teams Financial Resources: 1) Private investment 2) Banking Loans 3) Commune participation Work Breakdown: 1) Funding acquisition and supply contracts (6 months). 2) Site profiling, land-owner engagement (6 months to 1 year, concurrent with phase 1). 4) Equipment acquisition (6 months, concurrent). 5) Realization of system (6 months). 6) Operation and Maintenance (continuing thereafter).

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According to the financial model that shows the projections of the project for

create three 1MW centralized PV power plant in three empty fields, to take advantage of the Italian PV feed-in tariff across the Limina community (on roofs), production in Italy, we can comment on the following:

6. PROJECT FOR Centralized PV PLANT

1 MW Centralized PV Plant –Liminia, ITALY (repayment period 10 years)

• Financial rate of return in according with the planned investment resources and production capacity per year, the financial rate of return is about 4% (repayment period 10 years, Table 8.), its very low whit the discount rate (15%). Also, sensibility rate of profitability is low (about 3% with little random influences factors), showed on Table 11.. Those economic factors show that the project will realize more costs than incomes for short period, i.e. the investment is profitable only for long period, its means more than 20 years.

• Net profit During the whole repayment period of 10 years, the project shows net profit with tendency of growth from year to year but with little and insufficient amount in according with investment (Table 13).

• Cash flow The cash flow shows the positive tendency but with little growing factor in according with investment, during the whole repayment period of 10 years (Table 14). This could be positively estimated but only for long period of repayment of investment.

• Profitability ratio This ratio shows tendency of growth form year to year that could be positively estimated.

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PROJECT FOR Centralized PV PLANT

1 MW Centralized PV Plant –Liminia, ITALY (repayment period 5 years)

in denars in EUR

DEN/EUR 61,7

Preparing activities 0,0 0,0

Building construction 18.510.000 300.000

- building and crafty activities 18.510.000 300.000




- other activities 0 EQUIPMENT - Wood briquette production plant 268.395.000 4.350.000

- invoice value with assemblage and transport 268.395.000 4.350.000

- custom 0% 0 0

- tax 0% 0 0



- custom 0% 0 0

- tax 18% 0 0

VECHICLES 0 0

- invoice value with assemblage and transport 0

- custom 0 0

- tax 18% 0 0

OTHER 17.501.205 283.650



- training 0 0


- interest 0 0

- other costs 0 0




0,0 0,0

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in denars in EUR



91.468.830,90 1.482.477 60,00%

BUILDING CONSTRUCTION 30.489.610,3 494.159 20,00%

WORKING CAPITAL

30.489.610,30 494.159 20,00%

TOTAL BANK CREDIT 152.448.051,5 2.470.795,0 100,00%


in denars in EUR


funds resources

BANKING CREDITS 152.448.051,5 2.470.795,0 50,00%

- Bank 152.448.051,5 2.470.795,0 50,00%


- World Bank 0,0 0,0 0,00%



OWN SOURCES 152.448.051,5 2.470.795,0 50,00%

- preparatory investments 152.448.051,5 2.470.795,0 50,00%


- SEAF 0,0 0,0 0,00%




0,0 0,0 0,00%

0,0 0,0 0,00%


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